Whether you need a home loan for buying a new home or remodeling an existing home, you can save a huge amount of money by getting home loans from credit unions. They offer better interest rates, are more flexible with re-payment terms and offer excellent customer service. Credit unions are considered a cross between a bank and a co-operative and often, people who share similar interests, set up a credit union to save money and avail low interest loans. The credit unions have become highly popular among people who seek auto and home loans.

Credit unions are community organizations that are run by the members and help each other by offering financial assistance. They function like banks but are more flexible as compared to banks and other financial institutions. The members are offered loans at very competitive prices with a possibility of altering the re-payment terms.

The members of the credit union either live in the same community, work together or have some other common bond. They can also be members of a trade union or a church. The credit unions function on non-profit basis and they use the profits to improve their services and reward their members. The credit unions range from small to large depending on if they have a few or thousands of members. The unions are regulated and they abide by certain rules which are pro customers and aim to extend the profit to their members.

A credit union offers home loan on the basis of the income of the member, his or her savings with the union and some other terms. They offer loans on lower interest rates as compared to banks and other financial institutions.  
If you apply for a home loan to a bank, you may have to fulfill a number of formalities and provide huge documents. However, while applying with a credit union, you can expect flexibility and leniency. Banks consider your credit score and offer home loans at high interest rates. They are even strict about the repayment terms and require you to pledge collateral. On the other hand, a credit union is flexible regarding credit score and you can discuss your individual case with them. It is much easier to apply and get a loan approved at a credit union than a bank or other financial institution.

We, at Greater Central Texas Federal Credit Union offer quick and convenient home loans at affordable interest rates. For more information, call us at (254) 690 – 2274 or visit our office at 3305 E Elms Road, Killeen, TX 76542.

• Account Agreement: The agreement that determines membership eligibility, conditions for share accounts and other banking operations.
• Accrued Interest: Interest that is due but has not yet been paid to an account holder of a share account. It can also be due interest that has not yet been paid to the credit union by borrower of a loan.
• Adjustable-Rate Mortgage: A mortgage without a fixed interest rate. The rate fluctuates on the basis of market conditions such as index rate.
• Annual Percentage Rate: Percentage indicating the cost of credit on a yearly basis.
• Annual Percentage Yield: A percentage indicating the total amount of interest paid on a share account. The amount is based on the interest rate and frequency of compounding for the year.
• Annuity: Life insurance contract sold by brokers, insurance companies and other institutions as retirement investment.
• Automatic Bill Payment:  An automated system for an account holder to pay recurring bills.
• Available Credit: The remaining amount of funds in a line of credit or account that a member can borrow.
• Closing Costs: Expenses incurred by sellers and buyers when transferring the ownership of property.
• Collateral: Assets offered by a borrower for securing a loan or some other form of credit.
• Drawer: A person/entity who writes a check or draft asking the drawee to pay another.
• Drawee: The credit union or financial institution expected to pay a check or draft that is presented for payment.
• Escrow: The act of holding money or documents by a neutral third party prior to closing the property.
• Foreclosure: Legal process of selling property and using the proceeds for covering a mortgage debt.
• Open-End Credit: A credit agreement allowing members to borrow against pre-approved credit line for purchasing goods and services.
• Overdraft: When the amount in an account falls short of the amount being withdrawn from a checking account or share draft account.
• Payee: A person or organization to whom a check, draft or note is made payable.
• Payoff: Complete repayment of a loan.
• Share Draft Account: Checking accounts are called share draft accounts by credit unions. They are transaction accounts.
• Uncollected Funds: A part of a deposit balance that is due to be collected by the depository financial institution.